33. ABC Ltd. is planning to modernise its plant with latest technology.
The company is not having sufficient money. Financial Manager
plans to arrange money for 3 years as after three years, the
company is expected a good return from their previous (return)
investment. The finance manager do not want to spend floatation
cost and do not want to approach stock exchange.
(a)
Suggest the suitable source of finance in above case.
(b)
How can company approach public without spending on
floatation cost ?
(c)
State any two benefits of this source of finance.
Answers
Answered by
6
Answer:
company can sell it's shares to public to raise money. if they don't want to do it's they can purchase its own shares in open market
Answered by
0
a. Public Deposits.
The term "public deposits" refers to unsecured deposits solicited from the general public by businesses to help fund their working capital needs. As a result, public deposits are generally used for short-term funding.
Public deposits are deposits raised straight from the public at large by companies. Companies usually offer higher interest rates on public deposits than they do on bank deposits. Anyone who wishes to deposit money in a company must submit a specified form.
Similar questions